GBN: TSX Venture Exchange
SASKATOON, June 15 /CNW/ - Golden Band Resources Inc. (GBN: TSXV) is pleased to provide an update on development progress for the La Ronge Gold Project. The company is also pleased to report that 12,297,125 share purchase warrants issued in May and June 2009 with a term of one year have been exercised at a price of C$0.28 per share for total proceeds of $3.44 million. As a result of the exercise of these warrants the Company now has 210,737,743 shares outstanding and a cash balance of $5.5 million.
Federal Environmental Assessment
The company is pleased to report that the Federal Environmental Assessment Screening Report on the use of the Jolu mill's Mallard Tailings Management Facility for tailings disposal was approved by Fisheries and Oceans Canada (DFO) on June 4, 2010. Written comments were received from one private citizen, one municipality, and eight non-government organizations, and numerous oral submissions were made by the public during the public meetings. All submissions from Aboriginal and non-Aboriginal communities potentially affected by the project indicated strong support for the project. No comments indicating opposition to the project were received.
This approval allows the company to proceed to the regulatory approval stage of amending Schedule 2 of the Metal Mining Effluent Regulations (MMER) so that the Mallard TMF can be classified as a Tailings Impoundment Area under those regulations. The company has been advised by Environment Canada that the target timeline for this process is approximately 8 months, therefore the anticipated completion date is February 2011. In the meantime, the company will be able to start production using a provincially-approved above ground tailings management facility.
Ron Netolitzky, Executive Chairman, stated "With the achievement of this federal regulatory milestone, Golden Band is looking towards a longer term sustainability plan that will provide growth for the company within the La Ronge gold belt. Long term tailings storage in the existing Mallard TMF will allow the company to move forward with plans to develop a number of deposits such as Golden Heart, Tower East and Birch Crossing".
Jolu Mill Site
At the Jolu mill site, the company has been advancing site establishment in preparation for the commencement of mill refurbishment and site construction activities, scheduled to commence this month. To date the following activities have been completed:
- Commissioning of the overhead cranes in the mill and crusher
- Site brush clearing, including the Above Ground Tailings Management
- Removal of the ball mill motors and Knelson concentrator for
A number of activities are in progress including construction of the 25Kv grid power line, finalization of for-construction drawings and engineering plans, and preparation of tenders for equipment and services supply. To date, contracts have been let for the following:
- General refurbishment and construction award to Procon Kitsaki JV;
- Assay laboratory construction and equipment supply;
- Workshop, office and chemical storage facility construction;
- Hydro-cyclone supply;
- Mill liner supply.
Mill refurbishment is expected to commence by the end of June, with Kitsaki Procon JV now mobilizing to site. The project remains on schedule to be in commercial production in the fourth quarter of 2010, subject to completion of the project financing.
Bingo Underground Exploration Development
The previously announced development work (see news release of February 17, 2010) has progressed ahead of schedule, and will be completed this month. To date, over 600m of development has been completed on the 1355 Level and 1340L. The company has commenced surface and underground construction activity as the project moves toward the pre-production phase. On the 1340L, development of the footwall drift has commenced, which will provide access to stope drawpoints in the production area. Construction of the surface water settling pond has been completed. Construction activity is expected to ramp up over the next month and will include the following:
- Establishment of permanent office, workshop and utility facilities;
- Underground development of ventilation access drifts and the fresh air
- Installation of main ventilation fans and heaters;
- Extension of the existing decline ramp to the 1265 Level;
- Upgrading of the access road to all-weather ore haulage standard.
The Bingo deposit development progress is on track to commence commercial production activity in the fourth quarter of 2010.
About Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now poised to also become a gold producer. Golden Band is a Saskatchewan-based, publicly listed company (GBN: TSXV) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 750 km(2), including twelve known gold deposits, four former producing gold mines, and the licensed Jolu gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path to becoming a sustainable gold producer. The Company is aggressively pursuing its near-term goal for the development and production of its Bingo, Komis, EP, and Golden Heart gold deposits, with processing at the 100%-owned Jolu mill. Longer-term objectives include production from the Company's other deposits and the continuation of its highly successful exploration and acquisition strategy.
On behalf of the Board of Directors of Golden Band Resources Inc.,
"Ronald K. Netolitzky"
Ronald K. Netolitzky, Executive Chairman
All of Golden Band's development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
Cautionary Statements on Forward-Looking Information: The news release includes certain "forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements")." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding planned development, potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of potential financing, development and exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Golden Band are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events, or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Golden Band Resources Inc.
For further information: For further information: Gary Haywood, P.Eng., COO, Golden Band Resources Inc., Phone: 306 955 0787 x7124, Fax: 306 955 0788, Email: firstname.lastname@example.org; Investor Relations: Raju Wani, 403 240 0555; Tony Perri: 604 682 6852; Email: email@example.com, www.goldenbandresources.com